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What drove inflation over the last three to four years?
Just like in most other countries, the COVID-19 pandemic was largely defeated. People came out of isolation and started spending again. Demand for goods and services pushes prices up.
Pressure from many directions to boost “living” wages and the minimum wage enabled more spending.
A shortage of people willing to work and accelerated retirements forced employers to raise wages and offer signing bonuses.
Supply chain shortages did not go away quickly and prices went up due to more money chasing fewer goods.
Fuel prices went up as we traveled more.
Record employment levels meant also that demand for goods and services went up.
Housing expansion stalled during COVID driving housing prices up and prices of construction materials have not fallen back because demand is up.
Profitability in some sectors caused employees and unions to want to share in this profit.
Congress stalled in creating solutions and the number of bills passed sank to an historic low. Politics was played by both parties.
So exactly what part of this could any president do something about?
Doug Jones
Ellsworth
